How Distributors Use Vendor-Managed Inventory to Lock In Contracts

Episode 61 of Wholesale & Distribution with Fexingo examines vendor-managed inventory (VMI) — a strategy where distributors take over stock replenishment for their customers. Lucas and Luna break down the mechanics using a real-world example: a mid-sized industrial distributor that cut its customer's stockouts by 40% while locking in a three-year exclusive contract. They discuss the trust hurdle, the data-sharing requirements, and why VMI can be a moat against competitors. The episode also touches on the technology stack needed — from basic spreadsheets to API-connected ERPs — and warns against the biggest mistake: treating VMI as a sales tactic rather than a partnership. By the end, listeners will understand why VMI is one of the most effective tools for retention in distribution. #VendorManagedInventory #VMI #Distribution #Wholesale #SupplyChainManagement #InventoryManagement #B2BContracts #CustomerRetention #IndustrialDistribution #Logistics #BusinessPodcast #FexingoBusiness #Business #Finance #InventoryOptimization #DataSharing #Stockouts #ExclusiveContracts Keep every episode free: buymeacoffee.com/fexingo